Stat of the Week: Healthcare M&A Spending up 18% in 2017
The year hasn’t ended, and there are still two weeks to go in the fourth quarter of 2017. The holidays are already under way, with more on the horizon. Before we get too busy, here’s a quick look at where things stand in mid-December. Total healthcare mergers and acquisitions reached 1,467 deals as of December 14. That’s only 7% lower than the combined total for all of 2016, at 1,574 deals. Spending on these transactions is already higher. This year’s dollar volume currently stands at approximately $303.9 billion, up 18% compared with last year’s total of $256.7 billion. Much of the credit for the spending rise goes to the largest single transaction announced... Read More »
CVS, Aetna Lead a Potential Big-Deal Parade
The fourth quarter, and the month of December in particular, are usually busy times for mergers and acquisitions, and often when big deals are announced. With one month to go in Q4:17, the pace may be picking up. Deal volume through December 1 stood at 231 transactions (-39% to last year’s 379), and $19.6 billion (-49% vs. $38.6 billion in Q4:16). But late on December 3, CVS Health (NYSE: CVS) and managed care giant Aetna (NYSE: AET) announced their $69 billion merger. More mega-deals are in the offing. Possibly. The CVS/Aetna deal was first reported in October by The Wall Street Journal, with talk of $200 to $205 per share for Aetna. The final price is $207 per share in cash and... Read More »
It’s When, Not If, for Bundled Payments
If you think the Bundled Payment Care Improvement(BPCI) initiative is a thing of the past, think again. Even though the Centers for Medicare and Medicaid Services (CMS) issued a final rule cancelling the episode payment models, that method of reimbursement is embedded in the healthcare system. That’s the strong opinion of a panel of industry players we assembled for our webinar, “Bundled Payments: The Changing Outlook on Post-Acute Care,” on November 30, 2017, the same day that CMS made the announcement. Here’s what Chris Garcia, CEO of Remedy Partners, and Eugene Goldenberg, VP at Cain Brothers, and Rich Tinsley, CEO of Stoneridge Partners, had to say. Garcia had... Read More »
Stat of the Week: Managed Care Deals Up 50% in Q3:17
Deal volume in this sector was low in 2016, and through the first half of 2017. Then deal activity doubled in the third quarter, if only to eight transactions. Third quarter deal volume represents a 40% share of the 20 deals announced in the previous 12 months, and a 167% increase over the same quarter in 2016. We don’t expect this sector to sustain even this level of activity, given recent events. Although the Republican party has control of Congress and the White House, efforts to repeal the Affordable Care Act were unsuccessful, even in a late September push. President Trump made clear his disappointment, and then issued a pair of executive orders on October 12 aimed directly at the... Read More »
Deal of the Week: McKesson/RxCrossroads
The largest deal announced in a very sluggish week for healthcare announcements was McKesson Corp.’s (NYSE: MCK) $735 million acquisition of RxCrossroads from CVS Health Corp. (NYSE: CVS). RxCrossroads provides a range of specialty distribution, pharmacy and patient support to biopharmaceutical manufacturers. CVS acquired it in 2015 as part of its $12.7 billion deal for Omnicare Inc., which specialized in managing pharmaceutical care in long-term care and assisted living facilities. Omnicare paid $235 million for RxCrossroads in 2005, when it reported annualized revenue of $46 million. For McKesson, RxCrossroads will help it to capitalize on what the coming boom in the specialty... Read More »Schedule a demo
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